How to find the solution to an equation - ISEE Upper Level: Quantitative Reasoning

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Question

A company makes toy boats. Their monthly fixed costs are $1500. The variable costs are $50 per boat. They sell boats for $75 a piece. How many boats must be sold each month to break even?

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Answer

The break-even point is where the costs equal the revenues

Fixed Costs + Variable Costs = Revenues

1500 + 50_x_ = 75_x_

Solving for x results in x = 60 boats sold each month to break even.

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